A will is a legal document that outlines how a person's assets and property should be distributed after their death. This important document allows individuals to specify their wishes regarding the distribution of their possessions, financial accounts, real estate, and other assets to designated beneficiaries. By creating a will, a person can ensure that their estate is handled according to their preferences, which can also help reduce disputes among heirs and provide clarity regarding one's intentions.
In contrast, while some choices describe different legal or financial tools, they do not align with the definition of a will. A will is not limited to business transactions, nor is it directly a financial tool for investments or an insurance policy. Each of these alternatives serves its function but does not encompass the purpose and legal standing of a will in estate planning.